The tables below show the aggregate demand and two aggregate supplies for the economy of Zandu. Aggregate Quantity Supplied (1) Price Index 75 76 77 78 79 80 81 82 Aggregate Quantity Demanded 900 840 780 720 660 600 540 480 Price Index 75 76 77 78 79 80 81 82 720 720 720 720 720 720 720 729 a. Of the two aggregate supply schedules, (1) or (2), the neoclassical aggregate supply is schedule (Click to select) Of the two aggregate supply schedules, (1) or (2), the Keynesian aggregate supply is schedule (Click to select) b. According to the neoclassical school, the equilibrium level of price would be 77 c. According to the Keynesian school, the equilibrium level of price would be Assume that aggregate demand increased by $120. d. According to the neoclassical school, the new equilibrium value of price is and equilibrium real GDP is $ the neoclassical school. Price Index 78 78 78 78 78 78 e. According to the Keynesian school, the new equilibrium value of price is and equilibrium real GDP is $ the Keynesian school. 78 78 and equilibrium real GDP would be $[ and equilibrium real GDP would be $ according to according to Aggregate Quantity Supplied (2) 540 600 660 720 780 840 900 960

The tables below show the aggregate demand and two aggregate supplies for the economy of Zandu. Aggregate Quantity Supplied (1) Price Index 75 76 77 78 79 80 81 82 Aggregate Quantity Demanded 900 840 780 720 660 600 540 480 Price Index 75 76 77 78 79 80 81 82 720 720 720 720 720 720 720 729 a. Of the two aggregate supply schedules, (1) or (2), the neoclassical aggregate supply is schedule (Click to select) Of the two aggregate supply schedules, (1) or (2), the Keynesian aggregate supply is schedule (Click to select) b. According to the neoclassical school, the equilibrium level of price would be 77 c. According to the Keynesian school, the equilibrium level of price would be Assume that aggregate demand increased by $120. d. According to the neoclassical school, the new equilibrium value of price is and equilibrium real GDP is $ the neoclassical school. Price Index 78 78 78 78 78 78 e. According to the Keynesian school, the new equilibrium value of price is and equilibrium real GDP is $ the Keynesian school. 78 78 and equilibrium real GDP would be $[ and equilibrium real GDP would be $ according to according to Aggregate Quantity Supplied (2) 540 600 660 720 780 840 900 960

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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